Did you bother to calculate the potential max profit from that spread ? Looks like 50 cents per contract( before commissions), does it not? What is the point of doing that ,outlaying quite a few millions ?
Oct 31, $12calls 2,140 contracts with the bid up to $ 1.00, around 3p.m.(which was not that high even last week when ACHN was HIGHER than ever it was today) as the stock price was slowly declining.
Spells to me quite a bit of buying
Nov 22.$10 calls, 1,555 contracts traded, with the ask/bid stable.
Since this pair is my spread at the moment, I was paying attention.Even if someone else did the same, spread, still close to 600 Oct 31 contracts must be naked long ...
I do agree : all that is far from conclusive, and even if it is, means what exactly??
But this is unusual, so, perhaps, merits a moment or two of attention.
Over $ 750 mil, if the total amount distributed evenly .Not bad!!
So, ITMN proceeds( sold right after the deal was announced, left potentially $1/ share on the table) which I put right away mostly in PCYC don't just lie around doing nothing.Not bad.
Hardly as long as 10 years,I suppose: new, better drug(s) might come along over that many years.
So, the revenue from this one would be north of $400 mil ? Perhaps, quite a bit ..Not bad.
Thank you.smuckerboy1.What is the contract duration? For some reason, unable to open the link which might have the answer.
Q1.How many quarters like the last one and this one are needed to fully recoup the cost of Pharmaset acquisition ?
Q2.After that has happened, suppose under unbearable pressure from different parties the price(reasonable now) goes down. So what ?. Hep C franchise is still going to be very profitable.and some people think there are a few more drugs selling well already and a few more about to enter the market.
Q3.P/E might be too high if Sovaldi price goes down ? Why not worry about Regeneron( for example) then( or salivate if you are inclined to be short) ?
Weeklies for a few next weeks end at $28/29 strike.
At 12:30 p.m.:alled my broker, she talked to Chicago, initially response was that nothing could be done in terms of reset for those. OK. 10 min later she called back :"Great news" she said ."You should see higher strikes options on Tuesday.' I asked her if I would be the only one to have the privilege. She laughed. Amazing, that 1) No one raised the issue earlier.2)Chicago gang did nothing on their own, until prompted.
What happens to them when the underlying stock splits :the amount splits likewise ,strike and price adjust so total value remains the same as it was prior to the split ? That's it? Never experienced that with the options,long calls, just might with GILD...
Suppose, $40 Jan calls were buys( at $0.10). Why doing that and not buying $30 Jan calls for a just bit more ( volume there has been whole 15 contracts so far)?
You talk about Focus Media, right? Bought out since. So , it is difficult to me to dive into the past, Do you mind briefing me o on what happened then ( stock price reaction, etc..)? Thank you in advance.